Pound News: Extended Brexit Talks Boost Sterling
The Pound has bounced back from lows this morning, clawing back some of last week’s losses. Sterling bounced as investors reacted to news that UK-EU Brexit negotiations would be extended beyond last week’s self-imposed deadline.
Britain’s November job market report will be published tomorrow. While this is a typically influential dataset, any noteworthy Brexit developments would overshadow it.
Euro News: EUR Remains Appealing as ECB Doesn’t Hit Outlook Much
Last week’s European Central Bank (ECB) policy decision had little impact on the Euro outlook. The bank didn’t express much concern over Euro strength either.
As a result, the Euro remains fairly appealing overall. The Eurozone’s relatively resilient outlook amid the coronavirus pandemic is keeping the Euro strong against rivals like the Pound and US Dollar.
French inflation rate data due tomorrow is unlikely to be highly influential. The Euro will continue to be driven by strength in rival currencies.
US Dollar News: Anticipation for Federal Reserve Keeping USD Unappealing
The Federal Reserve will hold its December policy decision on Wednesday. The Fed is expected to signal more monetary policy support for the coronavirus-hit US economy, which is weighing on the US Dollar.
Coronavirus vaccine news is also weighing on the US Dollar, as the US Dollar is a safe haven currency that often weakens in times of higher market sentiment.
Canadian Dollar News: CAD Hit by Dented Risk-Sentiment
The Canadian Dollar’s strong streak paused at the end of last week. Today so far, CAD continues to fall against the Pound.
Concerns over the possibility of a no-deal Brexit, as well as doubts over US fiscal stimulus, limited market demand for risk and trade-correlated currencies like the Canadian Dollar.
Canadian manufacturing data will be published tomorrow. If it impresses investors it could boost the Canadian Dollar’s appeal.
Australian Dollar News: ‘Aussie’ Sustains Gains as Upside Momentum Persists
The Australian Dollar remains one of the market’s most-appealing major currencies. Despite the Pound’s rebound this morning, GBP/AUD remains well below last week’s levels amid ‘Aussie’ strength.
Coronavirus vaccine hopes and a surge in iron ore prices are keeping the risk and trade-correlated Australian Dollar appealing.
Tomorrow’s Reserve Bank of Australia (RBA) meeting minutes could boost the Australian Dollar even more if the bank is shown being relatively optimistic on Australia’s coronavirus outlook.